Functional differentiation of container ports: a case in China

The overcapacity in China’s ports has spurred port integration across many provinces but not in the Pearl River Delta (PRD) due to its unique institutional environment. Effective port integration often involves coordinating differentiated functions. We therefore wonder whether port functional differentiation occurs in the PRD. Traditionally, port throughput has been a primary indicator for functional differentiation, constraining the exploration of diverse shipping-related characteristics. This study aims to propose an analytical approach to identify various port functions with seven indicators, considering the multifaceted shipping characteristics of ship traffic and shipping services within a regional port system. The research approach is applied to the PRD container port system in South China, utilizing Automatic Identification System (AIS) data from 2015 to 2022. Furthermore, the study investigates how geographical conditions, industrial development, institutional factors, and port governance structures contribute to the observed functional differentiation. The results reveal evolving functional specialization among the core ports within the PRD. Hong Kong primarily focuses on imports and transshipment, Shenzhen establishes its strength in exports and serves as a gateway, while Guangzhou handles the majority of domestic traffic. We found that the port functional differentiation in the PRD has been largely spontaneous, with minimal proactive policy interventions.